FAIRAWN, Ohio—Materials maker A. Schulman Inc. posted lower results in the first half of its 2017 fiscal year, but officials remain optimistic about the firm's performance.
Schulman saw sales drop almost 6 percent to just under $1.2 billion in the six months ended Feb. 28. The firm's profit for that period slipped more than 10 percent to $8.5 million.
"We've stated this is a reset year," said Joseph Gingo, the company's chairman, president and CEO, in an April 4 news release. "However, I am highly encouraged with the steady progress we are making through the hard work of our teams."
He added that during the second quarter, Schulman saw strong results in Engineered Composites and experienced continued growth in its Asia-Pacific and Latin America segments related to improved product mix and strength in Performance Materials. The firm's European business also saw a year-over-year improvement in operating income despite the impact of foreign currency, helped by recent business simplification efforts, Gingo said.
"While our U.S. and Canada region remains challenged by complex plant consolidation efforts, which had been complicated by the Lucent matter, I am confident that we have solid action plans in place to drive future profitability," he said.
On a geographic level, Schulman's first-half sales grew almost 10 percent in Asia Pacific, but fell 7 percent in Europe/Middle East/Africa, almost 12 percent in U.S./Canada and almost 2 percent in Latin America. The EMEA region generated almost 49 percent of Schulman's first-half sales.
Based on products, the firm's Engineered Composites sales grew 6.5 percent for the half, but sales of Custom Concentrates and Services slid 5 percent and Performance Materials slipped almost 9 percent.